CSX Closes Sale on First Phase of the $525-Million Rail Transaction with the Commonwealth of Virginia

Rhea-AI Summary

CSX Corp. has finalized the first phase of a $525-million rail agreement with the Commonwealth of Virginia as part of a broader initiative to enhance rail services and infrastructure. This phase involves a permanent land easement to separate freight and passenger rail operations in the Washington, DC to Petersburg corridor. CSX anticipates completing the remaining phases over the next two years, continuing its collaborative efforts to improve transportation efficiency and safety for commuters and freight customers.

Positive

• Completion of the first phase of a $525 million rail agreement enhances operational efficiency.
• The agreement improves safety and efficiency for passenger and freight rail services.
• CSX's partnership with Virginia aims to benefit both commuters and freight customers.

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• None.

JACKSONVILLE, Fla., April 15, 2021 (GLOBE NEWSWIRE) -- CSX Corp. (NASDAQ: CSX) confirmed today the closing of the first phase of a comprehensive $525-million rail agreement with the Commonwealth of Virginia. This transaction is part of the Commonwealth’s previously announced multi-billion dollar rail transportation initiative to improve service and infrastructure in the state.

“CSX is pleased to close the first phase of this transaction with the Commonwealth of Virginia,” said James M. Foote, president and chief executive officer of CSX. “This transaction highlights our ability to find creative ways to generate meaningful value from our assets while enhancing the safety and efficiency of passenger and freight rail service in a vital transportation corridor. CSX looks forward to our continued partnership with the Commonwealth which will benefit commuters as well as our valued freight customers in the future.”

On March 26, 2021, CSX entered into an agreement to sell certain interests in three CSX-owned line segments to the Commonwealth of Virginia for a total of $525 million. This first phase of the agreement is for the conveyance of a permanent land easement to enable the separation of passenger and freight rail operations in the Washington, DC to Petersburg, Va. corridor. The remaining phases of the deal relate to line segments from Petersburg, Va. to Ridgeway, N.C., and from Doswell, Va. to Clifton Forge, Va. CSX anticipates closing on the remaining conveyances over the next two years.

About CSX

CSX, based in Jacksonville, Florida, is a premier transportation company. It provides rail, intermodal and rail-to-truck transload services and solutions to customers across a broad array of markets, including energy, industrial, construction, agricultural, and consumer products. For nearly 200 years, CSX has played a critical role in the nation's economic expansion and industrial development. Its network connects every major metropolitan area in the eastern United States, where nearly two-thirds of the nation's population resides. It also links more than 230 short-line railroads and more than 70 ocean, river and lake ports with major population centers and farming towns alike.

Forward-looking Statements

This information and other statements by the company may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act with respect to, among other items: projections and estimates of earnings, revenues, margins, volumes, rates, cost-savings, expenses, taxes, liquidity, capital expenditures, dividends, share repurchases or other financial items, statements of management's plans, strategies and objectives for future operations, and management's expectations as to future performance and operations and the time by which objectives will be achieved, statements concerning proposed new services, and statements regarding future economic, industry or market conditions or performance. Forward-looking statements are typically identified by words or phrases such as “will,” “should,” “believe,” “expect,” “anticipate,” “project,” “estimate,” “preliminary” and similar expressions. Forward-looking statements speak only as of the date they are made, and the company undertakes no obligation to update or revise any forward-looking statement. If the company updates any forward-looking statement, no inference should be drawn that the company will make additional updates with respect to that statement or any other forward-looking statements.

Forward-looking statements are subject to a number of risks and uncertainties, and actual performance or results could differ materially from that anticipated by any forward-looking statements. Factors that may cause actual results to differ materially from those contemplated by any forward- looking statements include, among others; (i) the company's success in implementing its financial and operational initiatives; (ii) changes in domestic or international economic, political or business conditions, including those affecting the transportation industry (such as the impact of industry competition, conditions, performance and consolidation); (iii) legislative or regulatory changes; (iv) the inherent business risks associated with safety and security; (v) the outcome of claims and litigation involving or affecting the company; (vi) natural events such as severe weather conditions or pandemic health crises; and (vii) the inherent uncertainty associated with projecting economic and business conditions.

Other important assumptions and factors that could cause actual results to differ materially from those in the forward-looking statements are specified in the company's SEC reports, accessible on the SEC's website at www.sec.gov and the company's website at www.csx.com.

Contact:
Bill Slater, Investor Relations
904-359-1334

Bryan Tucker, Corporate Communications
855-955-6397

FAQ

What is the CSX rail agreement with Virginia about?

CSX's $525 million rail agreement with Virginia aims to enhance rail services and infrastructure, beginning with a land easement to separate passenger and freight operations.

When did CSX finalize the first phase of the rail agreement?

CSX confirmed the closing of the first phase of the rail agreement on April 15, 2021.

What are the future phases of the CSX agreement with Virginia?

The future phases of the CSX agreement will include additional land conveyances from Petersburg, Va. to Ridgeway, N.C., and from Doswell, Va. to Clifton Forge, Va.

How much is the CSX rail agreement worth?

The CSX rail agreement with the Commonwealth of Virginia is worth $525 million.

What benefits will the CSX agreement provide?

The CSX agreement is expected to enhance safety and efficiency in rail services, benefiting both freight customers and commuters in the region.